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We are seen turning bullish on select fast moving consumer goods companies as we see
specific factors that will help these stocks outperform other players in the sector. While
competitive intensity will be high for Colgate-Palmolive India in the next couple of
quarters, we believe the street fears on further escalation in advertising and promotional
spending are unlikely to come true. Godrej Consumer Products as it expects margins of
the company's international business to recover. A recovery in international business
margins will be a key positive as investors have been concerned by the sharp drop in
profitability in both Indonesia and Africa. Revenues from international operations are
increasingly important to Godrej consumer as they contribute to about 45% of the
company's topline.
We are seen turning bullish on select fast moving consumer goods companies as we see
specific factors that will help these stocks outperform other players in the sector. While
competitive intensity will be high for Colgate-Palmolive India in the next couple of
quarters, we believe the street fears on further escalation in advertising and promotional
spending are unlikely to come true. Godrej Consumer Products as it expects margins of
the company's international business to recover. A recovery in international business
margins will be a key positive as investors have been concerned by the sharp drop in
profitability in both Indonesia and Africa. Revenues from international operations are
increasingly important to Godrej consumer as they contribute to about 45% of the
company's topline.
